EnvironmentLeave a Comment on FINAL 408B2 REGULATIONS PDF


The final regulations represent the last step in a process that the DOL began in Abstract: (b)2 Provider Disclosures have created confusion for employers. This document contains a final regulation under the Employee Retirement Income Security Act of (ERISA or the Act) requiring that certain. This bulletin discusses the impact of the U.S. Department of Labor’s (DOL) final (b)(2) disclosure regulation on discretionary investment managers – that is.

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These exemptions generally permit fiduciaries to receive compensation or other benefits as a result of the use of their fiduciary authority, control or responsibility in connection with investment transactions involving plans or IRAs. Such act rinal not exempt under section b 2 of the Act irrespective of whether the provision of the services by S is exempt.

The DOL’s 4008b2 2 fee disclosure regulation requires certain covered service providers to furnish specified information to plan administrators so that they regulatlons comply with their disclosure obligations in the participant-level disclosure regulation. As a result, once the b 2 disclosures are received, the new focus for many plan committees will be to evaluate that provider’s compensation.

The exemption proposed in this document, if granted, would allow certain insurance intermediaries, and the insurance agents and insurance companies 408g2 contract with, to receive compensation in connection with fixed annuity transactions that may otherwise give rise to prohibited transactions as a result of the provision of investment advice to plan participants and beneficiaries, IRA owners and certain plan fiduciaries including small plan sponsors.

B The responsible plan fiduciary, upon discovering that the covered service provider failed to disclose the required information, requests in writing that the covered service provider furnish such information. The b 2 Fiduciary Conundrums: Responsible plan fiduciaries of employee pension benefit plans must file these notices with the DOL to obtain relief from ERISA’s prohibited transaction provisions that otherwise may apply when a covered service provider to the plan fails to disclose information in accordance with the regulation’s requirements.

Do you know what you are 408b to do next? But, the story doesn’t end there.

Summary This document contains a notice of pendency before the Department of Labor of proposed amendments to prohibited transaction exemptions PTEs, and Thereafter, C retains F to provide for additional fees actuarial and various kinds of administrative services in addition to the services F is currently providing to P. E Responsible plan fiduciary. Nothing in this section shall be construed to supersede any provision of State law that governs disclosures by parties that provide the services described in this section, except to the extent that such law prevents the application of a requirement of this section.

The DOL has issued numerous fee disclosure regulations in an effort to make fees more transparent for plan sponsors and hold them accountable as fiduciaries, a role that requires them to act prudently and for the benefit of plan participants and their beneficiaries.


Even with all of the guidance from the DOL, questions and uncertainty abound.

DOLs (b) Final Fee Disclosure Rule –

More limitations on accuracy are described at the GPO site. Have you looked at them? This regulation will affect pension plan sponsors and fiduciaries and certain service providers to such plans.

The primary purpose of the amendments is to give the Department of Labor the rrgulations necessary to consider public comments under the criteria set forth in the Presidential Memorandum of February 3,including whether possible changes and alternatives to these exemptions would be appropriate in light of the current comment record and potential input from, and action by, the Securities and Exchange Commission and state insurance commissioners.

A description of all indirect compensation as defined in paragraph regulatios 1 viii B 2 of this section that the covered service provider, an affiliate, or a subcontractor reasonably expects to receive in connection with the fonal described pursuant to paragraph c 1 iv A of this section; including identification of the services for which the indirect compensation will be received, identification of the payer of regu,ations indirect compensation, and a description of the arrangement between the payer and the covered service provider, an affiliate, or a subcontractor, as applicable, pursuant to which such indirect compensation is paid.

D The notice shall contain the following information.

29 CFR 2550.408b-2 – General statutory exemption for services or office space.

Effective December 31,section of the Reorganization Plan No. D considers the recommendation and approves the purchase of the policy by P. You may also find useful information also under the Fees and Expenses page. No contract or arrangement will fail to be reasonable under this paragraph c 1 solely because the covered service provider, acting in good faith and with reasonable diligence, makes an error or omission in disclosing the information required pursuant to paragraph c 1 iv of this section or a change to such information disclosed pursuant to paragraph c 1 v B of this section or paragraph c 1 vi of this section, provided that the covered service provider discloses the correct information to the responsible plan fiduciary as soon as practicable, but not later than 30 days from the regulatioms on which the covered service provider knows of such error or omission.

This article helps explain the investment disclosure requirements. Nor may a fiduciary use such authority, control, or responsibility to cause a plan to enter into a transaction involving plan assets whereby such fiduciary or a person in which such fiduciary has an interest which may affect the exercise of such fiduciary’s best judgment as a fiduciary will receive consideration from a third party in connection with such transaction.

Regulatiojs to the expiration of A’s first contract with P, A persuades E to cause Regulwtions to renew A’s contract with P to provide the same services for additional fees in view of the increased costs in providing such services.


The Department of 408g2 Employee Benefits Security Administration is reopening the period for public comment on proposed regulatory amendments relating to enhanced disclosure concerning target date or similar investments, originally proposed in a previously published document in the Federal Register.

The Department is particularly concerned that, without a delay in the applicability dates, regulated parties may incur undue expense to comply with conditions or requirements that it ultimately determines to revise or repeal.

On January 1,C recommends to D that the plan purchase an insurance policy from U, an insurance company which is not a party in interest with respect to P. Through these arrangements, plan participants may be able to choose among the full range regklations investment options available in the investment marketplace. However, such an interest is not an interest which regulahions affect the exercise of E’s best judgment as a fiduciary.

The Department has explained its reasons in the preamble to the direct final rule. It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly.

The Department of Labor has already added a rebulations to their audit checklist asking plan sponsors for all their b 2 disclosures. The Department proposes to make this amendment applicable eight months after publication of the final amendment in the Federal Register. The plan-level fee disclosures are an ideal fial point for such a review. In addition, other technical amendments are proposed to improve the operation of the regulations.

This document contains a proposed amendment to the final regulation under the Employee Retirement Income Security Act of ERISA or the Act requiring that certain service providers to pension plans disclose information about the service providers’ compensation and potential conflicts of interest.

Unfortunately, these disclosures appear to promise only a mixed bag, finap some k plans sponsors befuddled. The proposed amendment would affect participants and beneficiaries of plans, IRA owners, and fiduciaries with respect to such plans and IRAs. This amendment is issued June 7, If the furnishing of office space or a service involves an act described in section b of the Act relating to acts involving conflicts of interest by fiduciariessuch an act constitutes a separate transaction which is not exempt under section b 2 of the Act.

This amendment the mailing address and web-based submission procedures for filing certain notices under the DOL’s fiduciary level fee disclosure regulation under section b 2 of ERISA.

Making Sense of the Details. The proposed exemption would affect participants and beneficiaries of plans, IRA owners and fiduciaries with respect to such plans and IRAs. Assume the same facts as in Example 2 except that the nature 408v2 C’s relationship with the plan is not such that C is a fiduciary of P.